Judge Knocks War Chest In $62.5M HSBC Madoff Deal

Law360, New York (July 21, 2011, 7:28 PM EDT) -- A New York federal judge on Thursday criticized parts of HSBC Holdings PLC's proposed $62.5 million settlement of a class action brought by Irish feeder fund investors who lost money in Bernard L. Madoff's Ponzi scheme.

Judge Richard M. Berman took issue with a proposed $10 million “war chest” included in the deal that would allow lead plaintiff Neville Seymour Davis to pursue litigation against other defendants, including Bank Medici AG and its Austrian chief, Sonja Kohn.